Want to know the 5 trends shaping the future of real estate in Malta? Let’s start by saying that the real estate market in Malta is experiencing one of its most active and exciting periods. Thanks to shifting demographics, modern lifestyle choices, and emerging technology, real estate is undergoing rapid changes.
And these changes are set to leave a lasting impact on how people search for and choose their ideal homes going forward. As I work with house hunters on a daily basis, I get to see first-hand what homebuyers are increasingly looking for in their properties and how this is affecting the wider market.
1. The owning vs renting debate
Property prices across Malta and Gozo have continued to soar to unprecedented levels over the past decade. Official reports have shown that local property prices have shot up by as much as 67.2% since 2001 with no signs of the market slowing down.
With entry prices so steep, this is naturally causing some concern among younger generations looking to make their first step up the property ladder. As such, a greater number of people are starting to consider whether rentals are a more viable property option.
The truth is that the owning-renting debate is one that’s happening all across the European Union at the moment. Because house prices are outpacing rental rates by quite a margin, renting is becoming more popular in many countries. In fact, in Germany, renting is almost
on par with owning, with 49% of the population being tenants. That said, owning remains far more common in most EU states. And this trend is also reflected in Malta.
So, the jury remains out on whether rental demands will begin to soar over the next decade. The good news is that Government is increasingly providing a range of incentives to help first time buyers. Only last October, the most recent budget announced that first time buyers purchasing qualifying properties will receive a grant of €15,000, which will be increased to €30,000 in properties in Gozo. More recently, the Prime Minister pledged to give first-time home buyers €1000 a year for first 10 years of their property purchase.
Furthermore, because property in Malta remains such a solid long-term investment, I believe it’s unlikely rentals will be overtaking owning a home any time soon.
2. House hunting is going digital
With modern life becoming more hectic, people are increasingly looking for simpler and more intuitive solutions is all aspects of their lives. This is also true of the house hunting experience being, a crucial one among the 5 trends shaping the future of real estate in Malta.
Thanks to great leaps in technology in recent years, the digital age has opened up new possibilities for house hunters to view and screen properties conveniently from their laptop or mobile device.
Thanks to innovations in 360 photography, drones, and virtual reality (VR), virtual property tours can really give people an accurate sense of the size, space, and feel of a property. Nowadays, more and more people are taking advantage of these digital solutions to shortlist their ideal properties before booking in-person viewings.
This also offers real estate agents a golden opportunity to maximise their time and efforts on the job. When property seekers book a viewing off the back of a virtual tour, there’s already a great deal of interest and better potential to close that sale.
3. New realities are determining property choices
The pandemic has also brought about irreversible changes to property buying. Due to the lockdowns, more and more people started to genuinely grasp the meaning of spatial limitations in their homes.
Over the past two years, there’s been growing interest among families to find properties which offer them more room to enjoy quality time together. This has also had a knock-on effect among developers, who are increasingly changing the way they build to give greater importance to spacious front terraces and outdoor spaces.
The remote and hybrid work revolution has also influenced property trends. As more people began working from home, many quickly realised the importance of having a dedicated space within the home from where to work. Increasingly, office space has become a must for
many professionals looking for their next home.
4. Eco-friendly home features are becoming essential
Like many other countries in Europe, Malta has seen a sharp rise in the cost of living in recent years, with energy bills continuing to increase. This is creating a greater demand for energy-efficient properties, especially among younger generations. From external insulation
and UPVC windows to eco-conscious design that takes advantage of natural light, shade, and ventilation, more developers are attempting to meet market demands to create homes that are less reliant on energy-intensive appliances such as heaters and air conditioning
units.
The upshot of this trend is that even local banks are giving preference on loans for properties with a better Energy Performance Certificate (EPC) rating. This is creating a greater incentive for house hunters to consider eco-friendly homes. To explore this topic in greater depth, check out an article I contributed to Money magazine where I discuss eco-conscious home design and the essential factors to consider when
looking for a sustainable place to live in Malta. Read it here.
5. New developments creating interest in
While properties in Sliema, St Julians, and Swieqi remain in high demand, there has been growing interest of late in more quiet, rural villages such as Manikata, Mġarr, and Zebbiegħ. Several factors are contributing to this rise in popularity among these gorgeous localities.
These include a greater selection of quality new-build properties entering the market, high potential character properties, and friendly neighborhood environments. There’s also the fact that these villages offer easy access to idyllic countryside whilst being close to Malta’s
stunning beaches on the northern coast.
A slew of much anticipated high-end developments is also generating greater interest in certain locations across Malta. Among these are Mercury Towers in St Julians, the redevelopment of the Jerma Palace hotel in Marsaskala, and the conversion of the ex- Halland hotel in Swieqi. These upcoming high-quality residential complexes are set to offer a new standard of living in Malta with a range of modern amenities and striking architectural design. As more unique residential projects arise, we are bound to see significant shifts in
popularity among Malta’s best places to live.
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These were five trends shaping the future of real estate in Malta. Now, are you looking for a home with plenty of outdoor space? Is a home office or eco-conscious design a priority for you? I can help you locate the property of your dreams in Malta’s most loved locations. Get in touch with me today to discuss your ideal property requirements and let the house hunt begin!
